Description

NSE revises timings for Early Pay-in (EPI) of funds and securities, and collateral allocation window for January 02, 2026, extending cut-off times to facilitate settlement operations.

Summary

NSE Clearing has revised the timings for Early Pay-in (EPI) of funds and securities, along with collateral allocation windows, specifically for January 02, 2026. The changes extend various cut-off times by 1-3 hours to facilitate settlement operations. This circular references SEBI’s circular SEBI/HO/MIRSD/DOP/P/CIR/2022/10 dated July 27, 2022, regarding settlement of running account of client’s funds with Trading Members.

Key Points

  • EPI of Funds final cut-off time extended from 07:45 PM to 09:00 PM
  • EPI of Securities final cut-off time extended from 08:00 PM to 10:30 PM
  • EPI of Securities for clients clearing directly with UPI block facility extended from 07:00 PM to 08:00 PM
  • Margin report download time extended from 07:00 PM to 10:30 PM
  • Collateral allocation window extended from 06:00 PM to 10:00 PM
  • Up streaming and down streaming of cash and FDR timings changed from 08:00 PM to 8:00 PM and 7:00 PM to 8:00 PM respectively
  • NSE Clearing will endeavour to release Cash/FDR/BG within one hour of request on January 02, 2026

Regulatory Changes

This circular implements timing adjustments in accordance with SEBI circular SEBI/HO/MIRSD/DOP/P/CIR/2022/10 dated July 27, 2022. The changes are specific to settlement operations and margin requirements for the capital market segment.

Compliance Requirements

  • All Members, Custodians, and PCMs must note the revised timings for January 02, 2026
  • Trading Members must ensure funds and securities pay-in comply with new cut-off times
  • Clearing members should submit collateral allocation requests within the extended window (up to 10:00 PM)
  • Members requesting release of Cash/FDR/BG should note the one-hour processing commitment by NSE Clearing, subject to collateral availability and margin checks

Important Dates

  • Circular Date: December 26, 2025
  • Effective Date: January 02, 2026 (one-day implementation)
  • Circular Reference: 0412/2025
  • NCL Reference: NCL/CMPT/72025

Impact Assessment

Operational Impact: The extended timings provide clearing members with additional time for settlement activities on January 02, 2026. The 2-hour 45-minute extension for EPI of securities (from 8:00 PM to 10:30 PM) and 4-hour extension for collateral allocation window (from 6:00 PM to 10:00 PM) offer significant operational flexibility.

Market Impact: Limited market-wide impact as this is a one-day adjustment. The change primarily affects back-office operations of clearing members and custodians rather than trading activities.

Member Impact: Positive impact for clearing members as extended timings reduce time pressure for meeting settlement obligations and managing collateral requirements. The commitment to release collateral within one hour provides better liquidity management capabilities.

Impact Justification

Operational change affecting settlement timings for one specific date (January 02, 2026). Medium importance as it impacts clearing members' daily operations and margin requirements but is a one-day adjustment rather than permanent policy change.